📈 Sri Lankan Secondary Bond Market & Forex Update: Yields Rise Amid Bearish Sentiment

• Secondary Bond Market Overview: Secondary government securities yields extended their upward trajectory amid geopolitical tensions in the Middle East, elevated global oil prices, and persistent hawkish expectations from major central banks. Despite market pressures, transaction volumes remained robust, supported by sizeable block trades. • Yield Curve Movements: • 2029 Maturities: 15.09.29 and 15.12.29 traded at 10.70% • 2030 Maturities: 01.08.30 (10.90%–11.15%), 15.10.30 (11.10%–11.22%) • 2031–2033 Maturities: 01.12.31 (11.52%–11.62%), 01.11.33 (11.85%) • 2034–2037 Maturities: 15.06.34 and 15.09.34 (12.00%), 15.10.34 (11.96%–11.98%), 15.08.36 (12.00%), 01.07.37 (12.05%–12.08%) • Money Market Liquidity: • Net liquidity surplus stood at Rs. 131.40 Bn. • Central Bank SDFR standing deposits: Rs. 58.06 Bn (at 8.25%); SLFR borrowings: Rs. 3.16 Bn (at 9.25%). • Central Bank absorbed Rs. 76.50 Bn via repo auctions (Overnight: Rs. 56.50 Bn at 8.72%; 7-day: Rs. 20.00 Bn at 8.75%). • Weighted average call money rate: 8.88%; repo rate: 8.96%. • Foreign Exchange (Forex): • USD/LKR spot rate depreciated to Rs. 329.15/329.35 (compared to Rs. 328.60/328.70 previously). • Total traded volume (11 Sept): US$ 86.23 Mn.